Lab Genomics is experiencing a significant surge in its stock price following news of a substantial investment from Stick Investment.
According to the Korea Exchange, as of 2:58 PM on June 9, Lab Genomics shares rose by 257 won (28.88%) to 1,147 won. The stock began the day with a rise of over 10% and continued to gain momentum as buying interest increased.
The surge in stock price is attributed to Stick Investment, a domestic private equity firm, announcing a 20 billion won investment in Lab Genomics.
Investment banking sources indicate that Stick Investment recently acquired the fifth series of non-guaranteed convertible bonds (CB) issued by Lab Genomics, amounting to 20 billion won.
The investment is being made through Stick Litmus LLC, which can convert the acquired CB into 13,642,564 common shares at a conversion price of 1,466 won per share, securing an 18.38% stake upon exercising the conversion rights.
This investment is part of the 430 billion won 'Stick Credit No. 1 Blind Fund' established at the end of last year. It is known to be led by the credit division and focuses on mezzanine investments in listed companies. The investment in Lab Genomics is the fourth case for this fund, following investments in Interojo, Kolon TissueGene, and Ecosolution.
Market observers note that Stick Investment's decision to invest reflects a high assessment of Lab Genomics' growth potential. The company specializes in non-invasive prenatal testing (NIPT) and genetic analysis services, and it is expanding its molecular diagnostics business, which includes PCR (polymerase chain reaction), molecular diagnostics (MDx), immunoassays, and next-generation sequencing (NGS).
Notably, Lab Genomics is set to complete the acquisition of a CLIA Lab in the United States in 2024, marking its entry into the U.S. market. This investment is expected to accelerate the company's expansion in the global diagnostics sector.
* This article has been translated by AI.
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